System and method for consumer control over card-based transactions

ABSTRACT

A system and method for consumer control over card-based transactions and associated accounts. An interface is provided between a merchant or the merchant&#39;s bank and the bank or banks at which the consumer has accounts for card-based transactions. The interface acts as an intermediary which is accessible to the consumer so that the consumer may place a variety of controls on card-based transactions. For example, multiple transaction cards may be linked to a single credit account with each card having a different credit limit. As another example, each transaction card may be restricted to a particular merchant. As yet another example, a consumer may link several credit and/or debit accounts to a single transaction card; the consumer may pre-select criteria to be utilized for directing charges for a particular transaction to be applied the different accounts. The consumer may access the interface via a web site or a telephone for making changes and receiving account information. Flexibility and control over the use of transaction cards is, therefore, provided for card-based transactions and for debit and credit accounts used in connection with such card-based transactions.

PRIORITY CLAIM/RELATED APPLICATION

This application is a continuation of U.S. patent application Ser. No.11/197,920 filed on Aug. 5, 2005 now U.S. Pat. No. 7,359,880 andentitled “System and method for consumer control over card-basedtransactions”, which is a continuation of U.S. patent application Ser.No. 09/613,491, filed on Jul. 11, 2000 now abandoned and entitled“System and method for consumer control over card-based transactions”,both of which are incorporated herein by reference.

BACKGROUND OF THE INVENTION

The present invention relates to the field of card-based transactionsand accounts. More particularly, the present invention relates to amethod and apparatus for providing to a consumer increased control overhis or her accounts for card-based transactions.

Retail merchants have granted charge privileges to their customers forcenturies. Small stores, in which the proprietor dealt personally withcustomers, characterized retail trade until about a century ago. When acustomer wanted to charge a purchase, the owner simply made an entry ina ledger book to record their purchase.

The last years of the nineteenth century and beginning years of thetwentieth century saw the rise of the department store. These giant, newstores became popular with consumers by offering a wide variety ofmerchandise under one roof.

Department store owners realized that they needed to grant chargeprivileges just like small shops. But rather than interacting with asmall store's proprietor directly, consumers now interacted with a newtype of employee, a sales clerk. Sales clerks at large, busy departmentstores could hardly be expected to know each customer by name the waysmall shop owners did.

This led to the development of the charge card, a wallet-sized card thatidentified customers as having a charge account at the store andprovided either their name and address or an account number linked tothem. Charge cards quickly evolved into metal plates with the consumer'sidentification embossed on them so that it could be imprinted on a cashregister receipt or charge slip.

Starting in the late 1950s and early 1960s, a new type of card appeared,bank-issued credit cards. These cards had two unique features: they wereissued by banks with the intention that they could be used at a varietyof stores, restaurants, and other retail establishments; and they werecredit cards rather than charge cards. They offered the consumer a lineof personal credit and did not have to be paid in full every month, asdid charge accounts. Since the 1980s, even more forms of cards haveappeared: automated teller machine (ATM) cards and debit cards. Incontrast to credit cards, these cards directly debit the owner's bankaccount for a transaction. Collectively, these different types of cardscan be referred to as transaction cards, examples of which includedebit, ATM, credit, charge, and entertainment cards. Use of thesetransaction cards can be referred to as card-based transactions.

Transaction card usage is so universal today that according to theNilson Report, an industry newsletter, 96% of all retail transactions inthe United States involve the use of transaction cards. As credit andother forms of transaction cards spread, issuers (typically banks)quickly banded together into associations that could accept and cleartransactions from other member banks, allowing cards to be used acrosswide geographic areas. Eventually, these became today's giantassociations such as Visa® and MasterCard®.

Issuers soon discovered a dark side to the universality of transactioncards: they could be stolen and thieves could quickly run up immensecharges against the card. Even consumers could go on a spree and quicklyexceed their credit limit. Banks set up toll-free telephone numberswhich merchants were required to call to get approval for transactionsin excess of a “floor limit” (typically, about $50). Eventually,magnetic strips encoded with account information (e.g., the cardholder'sname and the credit card number) were added to cards and simple,low-cost terminals were developed to read the cards, send transactioninformation and receive approval automatically. Today, virtually everytime a customer presents a card to a store cashier, the transaction isreported to a central clearing facility and checked for approval inreal-time.

In a typical card-based transaction, the customer presents hertransaction card to the merchant. The merchant then swipes thecustomer's card through a reader terminal which reads from the card'smagnetic strip the customer's name, account number and card expirationdate. In the case of a mail order or a telephone order (referred to as“MOTO”), the merchant manually keys this information into the terminal.

The terminal contacts the merchant's bank (referred to as the acquiringor accepting bank) and provides details of the transaction including thecustomer's information and additional information about the merchant andthe transaction. This additional information may include the merchant'sidentification code, type of business (e.g., Standard IndustrialClassification or SIC), location, and the amount of the transaction.

The acquiring bank then contacts the bank that issued the customer'scard (referred to as the issuing or settling bank), typically through acard association's private network, and provides the information aboutthe transaction. The issuing bank examines the transaction, checkingthat it does not exceed the consumer's credit limit and performing otherchecks such as for abnormal transactions indicating possible theft.

Approval of a transaction also reserves a portion of the consumer'savailable credit line for that transaction. This helps prevent caseswhere a merchant submits a transaction to the issuing bank only to haveit returned because the customer has used up her card's available creditline.

Actual transactions are batched together and forwarded nightly by themerchant to his acquiring bank. His bank account is credited with theamount of the transactions submitted, less a per-charge processing fee.The acquiring bank then sends batches of transactions to each issuingbank via the card association's private network and accounts are settlednightly between banks.

Sometimes the amount of a transaction may not be for the exact amountgiven when seeking authorization for the transaction. One example isrestaurant charges, where customers add tips to the charge slip. Tomatch transactions to approvals even if the amounts do not match, themulti-digit authorization code is used to key transactions to approvals.

In a similar vein, some authorizations may not be for actual charges,but rather for approval and confirmation that the cardholder will beable to pay a certain amount at a later time if needed. Examples includedamage deposits against rentals and guaranteeing the ability to pay oncheckout when registering at a hotel. For this reason, authorizationsalso have expiration dates (typically a week after issuance); if amatching transaction has not been submitted by the merchant by thattime, the authorization expires and the amount is restored to theconsumer's available line of credit.

Telephonic transaction authorization has brought a variety of importantbenefits to banks and merchants. The cardholder's available credit isinstantaneously reduced by the amount of the purchase, making itdifficult for the cardholder or a thief to exceed the charge or creditlimit on the card. Banks can also track card usage patterns; abnormalusage (e.g., atypical purchases or a sudden flurry of purchases in adistant city) can signal a stolen card.

All transaction cards issued by a bank are directly linked to a specificaccount with specific characteristics (e.g., a specified credit limit).While duplicate cards may be obtained, the duplicate card functionsexactly as the original card. This leads to consumers having to carry amultitude of cards, one for each of their various credit and debitaccounts. In addition, card-based transactions are approved or denied bythe card-issuing bank solely based upon criteria determined by the bank.Accordingly, the consumer has little or no control of the approval ordenial of a specific transaction. Therefore, what is needed is atechnique for providing to the consumer increased flexibility andcontrol over the use of transaction cards for card-based transactions.Preferably, such a technique would not require the consumer to carry amultitude of transaction cards. What is further needed is a techniquefor providing to the consumer increased flexibility and control overdebit and credit accounts used in connection with such card-basedtransactions. It is to these ends that the present invention isdirected.

SUMMARY OF THE INVENTION

The invention is a system and method for consumer control overcard-based transactions and associated accounts. An interface isprovided between a merchant or the merchant's bank and the bank or banksat which the consumer has accounts for card-based transactions. Theinterface acts as an intermediary which is accessible to the consumer sothat the consumer may place a variety of controls on card-basedtransactions.

A transaction card issued to the consumer may appear similar to aconventional credit card. However, the transaction card need not bebacked directly by a line of credit, as is the case for a conventionalcredit card. Rather, transactions performed using the transaction cardmay be selectively linked to one or more lines of credit or debitaccounts by the interface of the present invention. The selected line ofcredit or debit account may then be used to make the purchase. Theconsumer may access the interface to place a variety of controls oncard-based transactions which the consumer previously was unable to do.Thus, by inserting the interface into the transaction, the consumer hasincreased control over the transaction.

The interface may be considered an electronic wallet which resides at aremote server and is accessible to a consumer via the Internet or via atelephone. The user places one or more actual credit or debit cards inthe electronic wallet by entering the account information to the server.The consumer may also access the interface for making changes to themanner in which transactions are handled by the interface. Purchasesusing the transaction card are processed through the wallet asinstructed by the consumer. For example, multiple transaction cards maybe linked to a single credit account with each card having a differentcredit limit. As another example, each card may be restricted to aparticular merchant. As yet another example, a consumer may link severalcredit and/or debit accounts to a single card; the consumer maypre-select criteria to be utilized for directing charges for aparticular transaction to be applied the different accounts. As afurther example, the consumer may enable or disable selected transactioncards or accounts by accessing the interface and without having tocontact the account-issuing bank directly.

The consumer may also access the interface for receiving accountinformation, such as a history of purchases and current accountbalances.

Accordingly, the present invention provides to the consumer previouslyunknown flexibility and control over the use of transaction cards forcard-based transactions and over debit and credit accounts used inconnection with such card-based transactions.

In accordance with an aspect of the invention, an interface between amerchant's bank and a bank at which a consumer has an account forconducting card-based transactions is provided. The interface isremotely accessible by the consumer for selectively restricting approvalof a transaction.

In accordance with another aspect of the invention, a method ofconducting a card-based transaction is provided. A card is presented toa merchant for a transaction. Information relating to the transaction iscommunicated from the merchant to an interface. At the interface, adetermination is made whether to approve or deny the transaction basedupon a criteria selected by the consumer. When the transaction is to beapproved based upon the criteria selected by the consumer, informationrelating to the transaction is communicated from the interface to a bankat which the consumer has an account. Whether to approve or deny thetransaction is also determined based upon predetermined criteriaselected by the bank. Results of the determination whether to approve ordeny the transaction are communicated to the merchant.

The criteria selected by the consumer for restricting approval of atransaction may include a restriction to a particular merchant, arestriction on the amount of the transaction, a restriction on a balanceaccrued for transactions during a period of time, or a restriction on atype of goods or services purchased. The card may be presented by a carduser other than the consumer. The transaction may be consummated withoutthe merchant receiving the identity of the consumer. The bank at whichthe consumer has the account may be selected from a plurality of banksat which the consumer has an account based upon an amount of thetransaction, based upon a type of goods or services purchased during thetransaction, an identity of the merchant, a current account balance. Thebank at which the consumer has an account and the interface may eachdetermine independently of the other whether to approve the transaction.

In accordance with another aspect of the invention, an interface betweena merchant's bank and a bank at which a consumer has an account forconducting card-based transactions is provided. The interface isremotely accessible by the consumer for selectively directing atransaction to an account wherein the account to which the transactionis directed is identified from among a plurality of accounts held by theconsumer based upon criteria selected by the consumer.

In accordance with a further aspect of the invention, a method ofconducting a card-based transaction is provided. A card is presented toa merchant for a transaction. Information relating to the transaction iscommunicated from the merchant to an interface. At the interface, anaccount is identified from among a plurality of accounts held by theconsumer to which the transaction is to be directed based upon criteriaselected by the consumer. Information relating to the transaction iscommunicated from the interface to a bank at which the consumer has theidentified account. Whether to approve or deny the transaction isdetermined based upon predetermined criteria selected by the bank.Results of the determination whether to approve or deny the transactionare communicated to the merchant.

The bank or account to which the transaction is directed may beidentified based upon an amount of the transaction, a type of goods orservices purchased, an identity of the merchant or a current accountbalance. The interface may include a web server for allowing theconsumer to access the interface via the world wide web.

In accordance with yet another aspect of the invention, an interfacebetween a merchant's bank and a bank at which a consumer has an accountis provided. The interface directs card-based transactions made by theconsumer using any of a plurality of cards to the account. The interfaceselectively restricts approval of a transaction made using one of theplurality of cards in accordance with a limitation on an amount of thetransaction. The limitation for each of the plurality of cards is notnecessarily being equal. The interface is accessible to the consumer forselecting the limitation for each of the plurality of cards. Theinterface may include a web server for allowing the consumer to accessthe interface via the world wide web.

In a further aspect of the invention, an interface between a merchant'sbank and a bank at which a consumer has an account is provided. Theinterface directs card-based transactions made by the consumer using anyof a plurality of cards to the account. The interface selectivelyrestricts approval of a transaction made using one of the plurality ofcards based upon whether the consumer has enabled or disabled the cardbeing used. The interface is accessible to the consumer for selectivelyenabling or disabling each of the plurality of cards. The interface mayinclude a web server for allowing the consumer to access the interfacevia the world wide web.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 illustrates a block schematic diagram of a system for card-basedtransactions including an interface in accordance with the presentinvention;

FIG. 2 illustrates the interface of FIG. 1 in more detail;

FIG. 3 illustrates a flow diagram by which a customer may access theinterface of FIGS. 1-2 for making selections and obtaining accountinformation; and

FIG. 4 illustrates a flow diagram by which a card-based transaction maybe conducted via the interface of FIGS. 1-2.

DETAILED DESCRIPTION OF A PREFERRED EMBODIMENT

FIG. 1 illustrates a block schematic diagram of a system 100 forcard-based transactions including an interface 102 in accordance withthe present invention. As shown in FIG. 1, the interface 102 ispositioned as an intermediary between a merchant's bank 104 and one ormore account-issuing entities 106-110, such as credit- or debit-cardissuing banks. As used herein, the term “bank” refers to an entity atwhich a consumer may have funds on deposit or which may issue credit toa consumer. The interface 102 communicates with the entities 106-110 forperforming a variety of card-based transactions for a customer 112, suchas automatic teller machine (ATM) transactions, debit, credit, charge,retail store, and entertainment card transactions.

The customer 112 may be an individual, a family, a business, anon-profit organization, a corporation or other type of entity. A largenumber of customers may subscribe to the services provided by theinterface 102, while the interface 102 may interact with a large numberof entities 106-110. Each customer may be charged a fee for use of thesystem 100, such as a monthly fee or a per transaction fee.

As an example of a card-based transaction using the interface 102, atransaction may be initiated by the consumer 112 making a purchase froma merchant 118. The interface 102 may also be used in any othertransaction where a customer presents an account number and thetransaction is then processed based on the account number. This includespurchases made by telephone order or via the Internet (i.e.,“e-commerce”).

One or more transaction cards issued to the consumer 112 may each appearsimilar to a conventional credit card. However, each transaction cardneed not be backed directly by a line of credit, as is the case for aconventional credit card. This means that the entities 106-110 may bedistinct from the provider of the interface 102. However, the interface102 may be utilized to selectively link transactions performed using atransaction card to one or more lines of credit or debit accounts issuedby the entities 106-110. While a transaction card need not be backeddirectly by a line of credit, a transaction card may be backed directlyby a line of credit. This means that the interface 102 may be providedby, or may be associated with, one or more of the entities 106-110. Avariety of services may be provided by the multiple entities 106-110 viathe interface 112. For example, if the customer 112 has a brokerageaccount, a variety of services may be provided by the broker. Suchservices may include, for example, a line of credit which may beprovided or an automatic deduction from a debit account may occur forinvestment in a brokerage account.

The card number on the transaction card need have no direct connectionto the customer's identification. Rather, many cards may be issued tothe same customer. Such cards need not have the customer's name printedon them. In which case, the customer may consummate a transaction with amerchant anonymously (i.e., the merchant need not know the customer'sname or identity). Furthermore, additional card numbers and/orshort-lived and virtual cards may be issued. For example, a card numbermay be issued to a customer where there is no physical card. The cardnumber may then be used to make purchases by telephone or via theInternet. The purchases may be made anonymously. Alternately, if shedesires, the customer may provide her name or other identification tothe merchant. Such a card number may be restricted to a single purchaseor to a group of purchases (e.g., from a specified merchant and/or on aspecified day).

The customer 112 may access the interface 102 in a variety of differentways for making changes and selections which control the behavior of theinterface 102 in conducting the card-based transactions and forreceiving information regarding the accounts. For this purpose, thecustomer terminal 116 may be accessed by the customer 112. The terminal116 may include a personal computer system, a telephone or other devicefor accepting input from the customer 112 and providing information tothe customer 112. The customer's input may be communicated from theterminal 116 to the interface 102 via the network 114.

In a preferred embodiment, the customer 112 accesses the interface 102via a web site. In which case, the terminal 116 may include a personalcomputer system, while the network 114 includes the Internet (world wideweb). For example, the consumer 112 may access her account informationby providing her personal identification and a pre-assigned securitycode. The consumer 112 may then make selections and changes byinteracting with the web site. In addition, the consumer 112 may beprovided with selected and up-to-date status information regarding hervarious credit and debit accounts via the web site. For example, theconsumer 112 may receive all of her previous account configurationselections, a transaction history and current balances for all of heraccounts.

Alternately, the customer 112 may access the interface 102 via atelephone. In which case, the terminal 116 may include the telephone,while the network 114 includes a telephone network. The customer 112 mayinitiate a telephone call to the interface 102. Once a connection isestablished, the customer 112 enters her identification and securitycode via the telephone keypad. Requests for changes to the configurationof the interface 102 may be entered by the customer 112 navigating menusprovided audibly and by the customer 112 making selections by pressingkeys on the telephone keypad. Account information may also be audiblyprovided by to the consumer 112 via the telephone.

FIG. 2 illustrates the interface 102 of FIG. 1 in more detail. As shownin FIG. 2, the interface 102 may include a web server 120 for providingthe web site which may be accessed by the consumer 112 (FIG. 1) via thenetwork 114 (FIG. 1). The interface 102 may also include one or moretelephonic modems 122 for communicating with the merchant's bank 104(FIG. 1) and the customer's banks 106-110 (FIG. 1). For example, themodems 122 may provide direct private network connections or dial-upaccess. The modems 122 may also be utilized for providing telephonicaccess to the interface 102 by the customer 112 (FIG. 1).

A memory 124 may store account history information, such as balances formultiple subscribing customers' accounts, and configuration information,such as selections made by the consumers for their transaction cards andaccounts. The memory 124 may also store software programs for executionby a control section 126.

The control section 126 may include, for example, a general purposeprocessor which controls operation of the interface 102. For example,the control section 126 may update account balance information stored inthe memory 122 in response to transactions received from account-issuingentities 106-110 via the modem 122. In addition, the control section 126may update account configuration information in response to inputreceived from the consumer 112 (FIG. 1) via the web server 120 or modem122 and may provide account information to the customer 112 via the webserver 120 or modem 122 in response to requests by the consumer 112.

By accessing the interface 102, the customer 112 may obtain accountinformation and make selections for controlling the behavior of theinterface 102 for conducting card-based transactions. FIG. 3 illustratesan exemplary flow diagram 200 for accessing the interface 102 by thecustomer 112. Program flow begins in a start state 202. From the startstate 202, program flow moves to a state 204 where a connection is madeto the interface 102 (FIG. 1). This connection may be made, for example,by the customer 112 accessing an appropriate web site of the Internetvia a secure socket layer (SSL) protocol or by the customer 112initiating a telephone call.

Next, program flow moves to a state 204 where the customer provides hisor her user identification and security code or password. Thisinformation may be typed by the customer 112 assuming the customer isusing a computer keyboard. Otherwise, assuming the customer 112 is usinga telephone, this information may be keyed using a telephone keypad.Alternately, the customer 112 may provide her information by speakinginto the telephone. In which case, speech recognition may be performedto interpret this spoken input.

Verification of the customer's identification and security code is thenperformed by the interface 102 (FIGS. 1-2) to ensure that nounauthorized person is attempting to access the customer's accounts.Accordingly, from the state 206, program flow moves to a state 208. Inthe state 208, the customer's identification is cross-referenced to thecustomer's security code. Assuming the identification and security codedo not match, then program flow moves to a state 210 where an errormessage is provided indicating that there is not a match. From the state210, program flow may return to the state 206 to provide another attemptat entering a matching the identification with the security code. Aftera limited number of unsuccessful attempts, the interface 102 may notaccept any additional attempts until some other action is taken, such ascalling a customer service representative.

Assuming that in the state 208, there is a match, this indicates thatthe person accessing the interface 102 is, in fact, the identifiedcustomer 112 and is to be given access to her accounts. Then, programflow moves from the state 208 to a state 212.

In the state 212, the customer 112 may be presented with a menu ofoptions to choose from. For example, the options may include obtainingaccount and configuration information or changing account configuration.Assuming the customer 112 is using web access, then the menu can appearas a list of links which the customer 112 may select by simply using hercomputer system mouse. Alternately, assuming the customer 112 is using atelephone to access the interface 102, the menu can be presented to thecustomer 112 audibly along with the identification of an appropriate keyof the telephone keypad to be pressed for each selection. Assuming thecustomer 112 has multiple credit or debit accounts or multipletransaction cards, the customer 112 may also identify the particularaccount or transaction card for which configuration changes are to bemade or information obtained. Then, program flow moves to a state 214where the customer 112 selects from the options presented in the state212.

Assuming that in the state 214, the customer 112 (FIG. 1) selects theoption of changing the configuration of the interface 102 (FIGS. 1-2)for a particular account or transaction card, program flow moves to astate 216. In the state 216, the customer 112 may be presented with amenu of configuration options. The options may be presented in a similarmanner to those presented in the state 212 and may include, for example,enabling or disabling a particular card or account, changing rules formapping a particular transaction to a particular account and changingdollar amount limits. The dollar amount limits may apply to a particularcard, to particular transactions to be made using the card, or to aparticular account held by the customer 112.

From the state 216 program flow moves to a state 218 where the customermakes a selection. If the customer selects enabling or disabling aparticular card, account or transaction, program flow moves to a state220. In the state 220, the customer identifies the card, the account,the transaction or the merchant that is to be enabled or disabled andselects the action to be taken (i.e. enable or disable).

As an example of configuring the interface 102 in this manner, a cardmay be restricted to a specific merchant. That is, the card could bedisabled for all merchants except one or more specified merchants. Thismakes issuance of a company transaction card, for example to truckdrivers for purchasing fuel at a specific location, easy and simple.Loss, theft and/or damage of the card will not have major implications.Also, a card may be restricted to a specified type or types of goods orservices. For example, a parent may prevent a card given to a child frombeing used to purchase anything other than automobile repairs and schoolsupplies. As another example, when a transaction card is lost, it can beturned “off” (i.e. disabled) instead of being reported stolen. If thecard is later found, it can be turned “on” (i.e. enabled) again. As afurther example, a traveler could choose to carry several “off”transaction cards in his luggage in the event he looses his wallet. Incase of theft, the “off” cards are worthless. In the event the travelerloses his wallet, the traveler can turn “on” a card trivially at thesame time as turning “off” the card(s) in his wallet.

Banks and stores could offer courtesy cards which could be “turned on”for a short period of time to perform purchases and then “turned off” atthe end of the shopping trip.

Another option is for the customer 112 to require that all transactionsmade using a particular transaction card would require the customer'sauthorization directly to the interface 102. To accomplish this, theuser logs into the interface 102 via the Internet. Transaction requestsmay then appear on the customer's 112 display screen in real time. Thecustomer 112 can then choose to allow or disallow a specifictransaction. This feature may also be used to override specificlimitations previously selected by the customer 112.

Alternately, if the customer 112 selects to change the mapping rules,then program flow moves from the state 216 to a state 222. In the state222, the customer 112 identifies the card or account for which themapping rules are to be changed and identifies the change the customer112 desires to make to the rules pertaining to the selected card oraccount.

For example, by making appropriate selections of the mapping rules,multiple transaction cards may be linked to a single credit account witheach card having a different credit limit (the credit limits may be setby the customer 112 (FIG. 1), as explained below in reference to a state224). This may be desired, for example, so that a parent may link herown card to the same credit account as is linked to a card provided to achild. The child's card may be have a different (e.g., lower) creditlimit and/or may be limited to a particular merchant or merchantsselected by the parent. The parent may change or remove theserestrictions by accessing the interface 102 (FIGS. 1-2) and withouthaving to alter the terms of the account with the credit-issuing bank.This allows a parent to control a child's unacceptable purchases withouthaving to prevent all of the child's purchases. Accordingly, a card maybe used by someone other than the person to whom the card or associatedcredit or debit account was issued, however, the person to whom the cardwas issued may restrict use of the card as she sees fit.

As another example, a consumer 112 may link several credit and/or debitaccounts to a single card using the interface 102. The consumer 112 maypre-select criteria to be utilized for directing charges for aparticular transaction to be applied the different accounts. Forexample, purchases made from a particular department store may bedirected to a credit account issued by that store. Alternately,purchases which exceed a dollar amount specified by the consumer may bedirected to an account which has a comparatively low interest rate, withthe expectation that such charges may be paid down over several paymentperiods. Conversely, lower dollar amount purchases may be directedtoward an account which provides a greater benefit, such as airlinemiles, with the expectation that the charge will be paid off withoutaccruing significant interest charges. As a further example, purchasesof specified type of goods or services may directed to a specifiedaccount. For example, necessities, such as groceries and gasoline, maybe directed to a debit account from which the purchase amounts areimmediately deducted.

As another example, mapping rules may be selected by the customer 112which would direct charges to an alternate account if the credit limitset by an issuing bank is exceeded. Thus, a customer who has multiplelines of credit may be provided an effective credit limit equal to thesum of the outstanding limits across multiple credit accounts. Inaddition, if the customer has a credit line from a credit card issuerwhich is not accepted by a particular merchant (e.g., a DISCOVER™ cardmay not be accepted by all merchants), the interface 102 may directcharges to that account in a manner which is transparent to themerchant. As a result, credit cards with bonus programs such as frequentflyer mileage can receive all or most transactions even if issued by anissuer which is not well accepted by all merchants.

Further, transactions may redirected after the fact. By processing a newcharge against one account and a refund against another account fromwhich a prior charge is to be removed, charges may be effectively movedfrom one account to the other having been incurred.

In the state 214, if the customer selects to change a dollar limit,which when exceeded will result in a denial of the proposed transaction,program flow moves from the state 218 to the state 224. In the state224, the customer identifies the card, the account or the transactionfor which the dollar limit is to be changed and the new dollar limitthat is to be placed into effect for the identified card, account ortransaction.

As example of this feature, the user may wish to limit the total amountof purchases made using a particular account or transaction card. Thelimit may apply to the total balance for a card or account regardless ofthe time interval over which the charges accumulated. As mentioned, anexample is where a parent wishes to issue a transaction card to child.Initially, the parent may set the card to have a low (or $0.00) limit.Then, when a child (e.g., attending college out of town) calls foradditional money, the parent can then access the interface 102 (FIGS.1-2) and quickly raise the child's limit to a higher amount.Alternately, the limit may apply to a specified interval of time, suchas a month, a week or a day. Thus, for example, the parent may issue thecard to the child such that the child is limited to a specified total ofpurchases each month.

Additional enhancements include an ability for the customer 112 (FIG. 1)to automatically make payments or contributions. For example, thecustomer 112 may select to have the interface 102 apply funds toward amortgage held by one of the entities 106-110 (FIG. 1). Alternately, thecustomer 112 may select to have the interface periodically make fundtransfers to a retirement or savings account.

From any of the states 220, 222 or 224, program flow moves to a state226. In the state 226, the customer indicates whether she would like tomake additional changes or obtain additional information. Assuming shedoes, program flow returns from the state 226 to the 212 where the useris again presented with a menu of options.

Returning to the state 214, assuming that the customer chooses to obtainaccount information, program flow moves from the state 214 to a state228. In the state 228, the customer may be provided with additionaloptions for more particularly specifying which information regarding heraccounts and their current configuration that she would like to receive.Then, the customer is provided with selected information. The accountinformation may include a list of card-based transactions of thecustomer and current account balances. For example, the configurationinformation may include selections made in each for the states 220-224.

For example, several fields may be provided for each charge record whichthe customer 112 (FIG. 1) may use to make a permanent annotationregarding a specific charge. This could be used later to help thecustomer 112 determine the purpose of the charge and, perhaps, as areminder of its tax deductible status. As an another example, aplurality of different queries may be made to the data stored in thememory 124 (FIG. 2) to produce expense reports and other types ofanalysis which might be useful to the customer 112. Further, thecustomer 112 could review month-to-date expenditures, etc. at any pointin time. This “middle of the month” analysis could be quite usefulduring times of financial stress. Historic information may be maintainedon line indefinitely which would make recovery of records from previousyears easy.

Returning to the state 226, assuming that the customer 112 has completedmaking any desired changes and does not desire to receive any additionalinformation, program flow moves from the state 226 to a state 230. Inthe state 230, the connection between the customer 112 and the interface102 (FIG. 1) is terminated. This may include, for example, terminatingthe customer's access to the web site or disconnecting the customer'stelephone call, as appropriate.

Once the customer 112 has configured the interface 102 in accordancewith her preferences, the customer 112 may then make purchases using hertransaction card or cards. The interface 102 then ensures that thetransactions are consummated in accordance with the customer'spreferences. More particularly, FIG. 4 illustrates a flow diagram 300 bywhich a card-based transaction may be conducted via the system 100illustrated in FIG. 1.

Referring to FIG. 4, program flow begins in a start state 302. From thestate 302, program flow moves to a state 304. In the state 304, thecustomer 112 (FIG. 1) presents her transaction card to a merchant 118(FIG. 1). For example, the customer 112 may wish to purchase goods orservices from the merchant 118. While the customer 112 may present hercard to a store clerk at a retail store, the customer 112 mayalternately provide card information, such as her name, card number andexpiration date to the merchant by mail, over the telephone or via theInternet.

Program flow then moves to a state 306 where the merchant 118 thenprocesses the transaction. This may accomplished by the store clerkswiping the customer's card through a card reader terminal or by theclerk manually entering information from the card into the terminal. Inaddition, the merchant 118 contacts the merchant's bank 104 (FIG. 1).This may be accomplished by the merchant's terminal automaticallydialing a toll-free telephone number established by the merchant's bankfor this purpose, or by the store clerk dialing a customer servicetelephone number of the merchant's bank 104. Once a connection betweenthe merchant 118 and the merchant's bank 104 is established, themerchant 118 may provide the bank 104 with the card information, themerchant's identification and the dollar amount of the transaction.

Next, program flow moves to a state 308. In the state 308, themerchant's bank 104 (FIG. 1) contacts the interface 102 (FIG. 1). Thismay be accomplished, for example, by the merchant's bank 104 initiatinga toll-free telephone call to the interface 102 via the modems 122 (FIG.2) of the interface 102. So that the merchant's bank 104 contacts theinterface 102, rather than some other entity, such as an account-issuingbank, the transaction card may be assigned an appropriate bankidentification number (BIN). For example, the BIN number may be thefirst six numbers embossed on the transaction card. The BIN number mayidentify the interface 102 to the merchant's bank 104 as the appropriateentity to contact for approval of the transaction.

Once contact is made, the merchant's bank 104 provides to the interface102 information relating to the transaction, such as the cardinformation, the merchant's identification and the dollar amount of thetransaction.

From the state 310, program flow moves to a state 312. In the state 312,the interface 102 (FIG. 1) applies the customer's configurationselections to the transaction. These selections may be stored in thememory 124 (FIG. 2) of the interface 102 and may have been made by thecustomer interacting with the interface 102 as shown and described withreference to FIG. 3. For example, the interface 102 may determinewhether any rule was pre-selected by the customer for mapping thecurrent transaction to a particular account. If there is any such rule,then the interface 102 applies the rule. For example, assuming that thecustomer has configured the interface 102 to direction all transactionsfor less than $50 to a particular credit account, the interfacedetermines whether the current transaction is under $50.

Also in the state 310, the interface 102 may determine whether anydollar amount limitations were pre-selected by the customer. If such alimitation was selected, the interface 102 determines whether approvalof the current transaction would exceed the applicable limit. Further,the interface 102 determines whether any other limitation or rule mayapply to the transaction, such as a restriction placed on the identityof the merchant 118.

From the state 310, program flow moves to a state 312. In the state 312,a determination is made by the interface 102 as whether the currenttransaction should be approved based upon the rules and limitationsapplied in the state 310.

If the transaction is denied by the interface 102, program flow movesfrom the state 312 to a state 314. In the state 314, the interface 102notifies the merchant's bank 104 (FIG. 1) of the denial. This may beaccomplished, for example, by the interface 102 communicating the denialto the merchant's bank 104 via the telephone call initiated by themerchant's bank 104 in the state 308. Alternately, a separate telephonecall may be initiated by the interface 102. In addition, the interface102 preferably also notifies the customer 112 (FIG. 1) of the denial,such as by providing message to the customer 112 the next time thecustomer accesses the interface 102 via the web site or by telephone.Alternately, the interface 102 may notify the customer of the denial bysending an e-mail message to the customer 112 at an e-mail addresspreviously specified by the customer 112 or by an automated telephonecall placed to customer 112.

Program flow then moves to a state 316 where the merchant's bank 104notifies the merchant 118 (FIG. 1) of the denial. This may beaccomplished, for example, by the merchant's bank 104 communicating thedenial to the merchant 112 via the telephone call initiated by themerchant 118 in the state 306. In response, the store clerk may notifythe customer 112 and ask for another form of payment.

However, if the transaction is accepted by the interface 102 in thestate 312, then program flow moves from the state 312 to a state 322. Inthe state 322, the interface 102 contacts the appropriate one of thebanks 106-110 (FIG. 1) at which the customer 112 has an account. Thismay be accomplished by the interface 102 initiating a telephone call toa toll-free telephone number of the one of the banks 106-110 via themodems 122 (FIG. 2) of the interface 102. The appropriate one of thebanks 106-110 is selected based upon the mapping rules applied by theinterface 102 in the state 310. Once the connection is made, theinterface 102 may then provide to the bank information relating to thecustomer's account at the bank, such as the account number. This accountinformation may have previously been stored in the memory 124 (FIG. 2)of the interface 102. The interface 102 may also provide to thecustomer's bank information relating to the current transaction, such asthe merchant's identification and the dollar amount of the transaction.

From the state 320, program flow moves to the state 322. In the state322, the one of the banks 106-110 which was contacted in the state 320may determine whether to accept or decline the current transaction. Thismay be accomplished in a conventional manner as though the customer'sbank was contacted directly by the merchant's bank 104 (FIG. 1). Thus,the customer's bank need only determine whether the transaction wouldcause the customer's balance at that bank to exceed the customer'scredit limit issued by that bank or cause her debit account at that bankto fall below zero.

Preferably, the appropriate one of the account-issuing banks 106-110also checks each transaction for fraudulent activity, as would be donefor a conventional credit-card transaction. Accordingly, the interface102 is relieved of responsibility for this task. However, the interface102 may also be provided with fraud-checking ability. In which case, thecustomer 112 may control the type of checks for fraudulent activitywhich are performed by the interface 102. For example, the customer 112may request notification, or even disablement of a transaction card,when an attempt is made to make a purchase at a location which isfurther than a selected distance from the customer's home.

If the transaction is denied in the state 322, program flow may movefrom the state 322 to the state 314, where the merchant's bank 104(FIG. 1) and the merchant 118 (FIG. 1) are notified of the denial, asexplained above in reference to the states 314 and 316. Because anaccount-issuing bank may deny a transaction for its own reasons, theinterface 102 preferably does not allow a transaction to proceed unlessthe appropriate one of the account-issuing banks 106-110 (FIG. 1) alsoapproves the transaction.

However, if the transaction is accepted by the account-issuing bank inthe state 322, then program flow moves from the state 322 to a state324. In the state 324, the interface 102 updates the customer's accountbalance information to reflect the current transaction. This may beaccomplished by the interface 102 updating balance information stored inthe memory 124 (FIG. 2).

Then, program flow moves to a state 326 where the interface 102 (FIGS.1-2) notifies the merchant's bank 104 (FIG. 1) that the transaction isapproved. This may be accomplished, for example, by the interface 102communicating the acceptance to the merchant's bank 104 via thetelephone call initiated by the merchant's bank in the state 308.Alternately, a separate telephone call may be initiated by the interface102.

From the state 326, program flow moves to a state 328. In the state 328,the merchant's bank 104 (FIG. 1) notifies the merchant 118 (FIG. 1) thatthe transaction is approved. This may be accomplished for example, bythe merchant's bank 104 communicating the acceptance to the merchant 118via the telephone call initiated by the merchant in the state 306.Alternately, a separate telephone call may be initiated by themerchant's bank 104.

Program then flow moves to a state 330 where the merchant completes thetransaction. Accordingly, the merchant may present the customer with herpurchases along with a credit slip for the customer's signature. Fromthe state 330, program flow terminates in the end state 318.

1. A system for controlling card-based transactions comprising: acomputer system that generates a transaction card account number forperforming a card-based transaction, the transaction card account numberbeing associated with one or more cards with different card accountnumbers that correspond to one or more accounts at one or more issuingbanks; a transaction processing system associated with the transactioncard account number and operative between a first processing system at amerchant's bank and a second processing system at one or more of theissuing banks, the transaction processing system being adapted toreceive the card-based transaction from the merchant bank, and toperform the card-based transaction using one or more of the accounts byexecuting one or more rules associated with the transaction card accountnumber and stored on a server hosting the first transaction processingsystem, wherein the one or more rules include a rule limiting usage ofthe transaction card to only a predetermined period of time; and aninterface to the transaction processing system that is accessible by auser for allowing the user to dynamically and selectively modify the oneor more rules.
 2. The system of claim 1 wherein one or more second cardsare credit cards, debit cards, charge cards, ATM cards, smart cards orgift cards.
 3. The system of claim 1 wherein the transaction processingsystem is adapted to transmit a first portion of the transaction to afirst account and a second portion of the transaction to a secondaccount based on the one or more rules.
 4. The system of claim 1 whereinthe transaction processing system is adapted to convert the accountnumber associated with the first card and the card-based transactioninto a number associated with one or more of the accounts.
 5. The systemof claim 1 wherein the transaction processing system is adapted toapprove or deny the transaction based on the one or more rules, andwherein the user can dynamically restrict the transaction through theinterface.
 6. The system of claim 1 wherein the one or more rulesinclude a rule limiting usage of the transaction card to one or moreparticular transactions.
 7. The system of claim 1 wherein the one ormore rules include a rule limiting usage of the transaction card to apredetermined dollar amount.
 8. The system of claim 1 wherein the one ormore rules include a rule limiting usage of the transaction card to oneor more predetermined types of goods or services.
 9. The system of claim1 wherein the one or more rules include a rule limiting usage of thetransaction card to one or more predetermined merchants.
 10. The systemof claim 1 wherein the transaction card account number is not associatedwith a physical card bearing the transaction card account number.
 11. Amethod for controlling card-based transactions: issuing a transactioncard account number that links one or more transaction cards having oneor more different transaction card account numbers corresponding to oneor more accounts at one or more issuing banks, wherein the transactioncard account number is presentable by a user to perform a card-basedtransaction; receiving the card-based transaction from a merchant's bankat a server hosting a transaction processing system; determining how toprocess the card-based transaction based on one or more user-definedrules associated with the transaction card account number, wherein theone or more user-defined rules are stored on the server and are executedby the transaction processing system, wherein the one or more rulesinclude a rule limiting usage of the transaction card account number toonly a predetermined period of time; performing the card-basedtransaction using one or more of the accounts based on the determinedprocess; and providing an interface to the transaction processing systemthat is accessible by a user enabling the user to dynamically andselectively modify the one or more rules.
 12. The method of claim 11wherein one or more transaction cards are credit cards, debit cards,charge cards, ATM cards, smart cards or gift cards.
 13. The method ofclaim 11 further comprising: splitting the card-based transaction into afirst portion and a second portion based on the one or more rules;transmitting a first portion of the transaction to a first account; andtransmitting a second portion of the transaction to a second account.14. The method of claim 11 further comprising: approving or denying thetransaction based on the one or more rules, and wherein the user candynamically restrict the transaction through the interface.
 15. Themethod of claim 11 wherein the one or more rules include a rule limitingusage of the transaction card account number to a predetermined numberof transactions.
 16. The method of claim 11 wherein the one or morerules include a rule limiting usage of the transaction card accountnumber to a predetermined dollar amount.
 17. The method of claim 11wherein the one or more rules include a rule limiting usage of thetransaction card to one or more predetermined types of goods orservices.
 18. The method of claim 11 wherein the one or more rulesinclude a rule limiting usage of the transaction card to one or morepredetermined merchants.
 19. The method of claim 11 wherein thetransaction card account number is not associated with a physical cardbearing the transaction card account number.